As part of its ambitious growth and development plan, the National Shipping Company of Saudi Arabia (Bahri) has announced the signing of an agreement to establish the National Grain Company, which is a joint venture (JV) between Bahri and the Saudi Agricultural and Livestock Investment Company (SALIC). The JV aims to build and establish a terminal for handling grains at Yanbu Commercial Port, seeking to meet the future needs of the Kingdom of Saudi Arabia for major crops and cereals.
- Project start date: Second half of 2021.
- Project cost: Nearly US$110 million.
- Project method of funding: The project will be funded through the company's cash flow in addition to bank financing.
- Expected project end date: Second half of 2022.
- Expected impact on the Company’s financial results: The company is currently working on determining the expected financial impact of the project on the company's financial results, which it does not expect to be a material. The company will announce later the financial impact if it was material.
- Expected date on which the impact on the financial results of the Company will start: The expected impact of the project on the company's financial results will begin upon completion of the project.
- Expected date for the pilot production of the Project to begin: First half of 2022.
- Duration of the pilot production of the project: Three months.
- Expected date for the commercial production of the project: Second half of 2022.
- Executing party/Counter party in the Project/Contract: The executing party will be appointed in the second half of 2020 and It will be announced later.
- Related parties: Saudi Agricultural and Livestock Investment Company (SALIC), Owned by Public Investment Fund (PIF).
It is worth noting that the project extends over an area of 313 000 m2, and the storage capacity of the terminal is 280 000 t, while the production capacity of the terminal ranges from 3 - 5 million tpy.
The Capital Market Authority and the Saudi Stock Exchange take no responsibility for the contents of this disclosure, make no representations as to its accuracy or completeness, and expressly disclaim any liability what-soever for any loss arising from, or incurred in reliance upon, any part of this disclosure, and the issuer accepts full responsibility for the accuracy of the information contained in it and confirms, having made all reasonable enquiries, that to the best of their knowledge and belief, there are no other facts or information the omission of which would make the disclosure mis-leading, incomplete or inaccurate.
Read the article online at: https://www.drybulkmagazine.com/dry-bulk/26082020/agreement-signed-to-establish-the-national-grain-company/